Friday, November 28, 2014

Harworth Estates, one of the largest property and regeneration companies across the North of England and the Midlands, has acquired the site of the former Skelton Grange power station near Leeds from RWE Generation, its first major non-coalfield acquisition.

Based on its flagship development at Waverley in Rotherham, the developer manages around 31,370 acres across some 200 projects, with consent for 8,000 new homes. It is set to be completely acquired in a £150m deal by Coalfield Resources, the stock market-listed company created during a complex restructure of UK Coal.

The 162-acre site, which provided power to the city until 1995, offers the potential for development for distribution, open storage and energy generation uses. It already has outline planning consent for a range of commercial uses, including a 26MW, 300,000 tonne waste-to-energy facility.

The site will be branded as "Logistics Leeds" following on from "Logistics North" in Bolton where Harworth is developing 4m sq ft of distribution space over 250 acres.

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By regenerating former coalfields and brownfield land Harowrth valued its investment properties in June at £283.7m, up from £278.5m, and net assets at £247.3m, up from £234.7m. Key sites include Rotherham (Waverley), Bolton (Logistics North), Nottinghamshire (Harworth) and Pontefract (Prince of Wales). Earlier this year a strategic marketing alliance with The Peel Group was agreed with the aim of Peel Logistics becoming a key player in the logistics market.

Owen Michaelson, chief executive of Harworth Estates, said: "Skelton Grange fits very well with the rest of our property portfolio, given the number of commercial developments we are already bringing forward across Yorkshire. As we take the site forward to the occupier market we will be emphasising its range of assets and benefits, including its strategic location and high power connectivity.

"Our specialist team has significant experience developing large-scale brownfield sites and transforming them into places of lasting economic and social regeneration. We believe this is a key development site for the Leeds City Region and we look forward to bringing it to fruition."

Steve Boughton, head of business development at RWE Generation UK Plc, added: "We are delighted to have agreed the land sale to Harworth Estates, who are acknowledged experts in regenerating brownfield sites, creating high quality developments with corresponding employment opportunities. They have been a pleasure to do business with and I wish them success in bringing the scheme to market."

Mike Baugh of CBRE, who acted on behalf of RWE Generation UK Plc, added: "This sale represents one of the most significant site disposals in the Leeds area for many years. CBRE worked closely with RWE to ensure a smooth marketing campaign and successful completion of this transaction and we believe it represents an exciting prospect for Harworth Estates to bring forward what is a unique opportunity for the area."